Gaikindo Proposes Tax Holiday for Electric Car Development

By : Ridwan And Aldi Firhand. A | Friday, August 25 2017 - 20:19 IWST

Minister of Industry Airlangga Hartarto (second right) was accompanied by Director General of Metal, Machinery, Transportation and Electronic Equipment (ILMATE) I Gusti Putu Suryawirawan (left) at the opening of Gaikindo Indonesia International Auto

"The price of electric cars is still expensive, therefore we propose a tax holiday for the development of electric cars," said Secretary of Gaikindo, Kukuh Kumara in Jakarta (24/8/2017).

He added, with the tax holiday can attract investment in Indonesia at the same time can suppress the price of electric cars. "It may take a tax holiday for 10 to 15 years for investment in Indonesia to become more attractive," he said.

To that end, Gaikindo supports the wishes of the President of the Republic of Indonesia Joko Widodo makes Indonesia not only as an industry-based country, but based on technology as well.

"Gaikindo is ready to implement the contents of the Presidential Regulation or Government Regulation to be issued for the acceleration of electric vehicles for transportation," said Kukuh.

Previously, Minister of Industry, Airlangga Hartarto said the Ministry of Industry will review the application of tax incentives for the electric car industry which is still classified in expensive or luxury vehicles.

"The electric car is expensive, so there should be incentives from the government," he said, adding that the effort was to encourage the automotive industry in developing the environmentally friendly vehicles.

Based on Kemenperin records, to date the population of electric cars in the world about 4 million units and is expected in 2020 will reach 10 million units.

Meanwhile, Minister of Energy and Mineral Resources, Ignasius Jonan explained that the draft regulation to encourage the development of electric cars is currently being prepared by a cross-ministry team consisting of the Ministry of Finance, Ministry of Industry and Ministry of Energy and Mineral Resources.

"On this matter the presidential regulation or at least the government regulation (PP) we arrange first, about the final is almost we will consult the President," said Jonan.

What is clear, according to Jonan, there has been written instructions from President Joko Widodo that the government supports the development of electric cars. "The Minister of Finance also discussed with me several times how we are supporting a greener or cleaner environment," explained Jonan.

Jonan was optimistic that the electric car policy can be implemented because it is similar to the use of gas fuel in the transportation sector. "If this policy is implemented, import of LPG and fuel oil (BBM) will go down and this is important," said Jonan.